Correlation Between Playmaker Capital and International Game

Can any of the company-specific risk be diversified away by investing in both Playmaker Capital and International Game at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Playmaker Capital and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Playmaker Capital and International Game Technology, you can compare the effects of market volatilities on Playmaker Capital and International Game and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Playmaker Capital with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playmaker Capital and International Game.

Diversification Opportunities for Playmaker Capital and International Game

-0.13

Correlation Coefficient

Playmaker Capital  International Game

Good diversification

The 3 months correlation between Playmaker and International is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Playmaker Capital and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Playmaker Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Playmaker Capital are associated (or correlated) with International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Playmaker Capital i.e., Playmaker Capital and International Game go up and down completely randomly.

Pair Corralation between Playmaker Capital and International Game

If you would invest  35.00  in Playmaker Capital on September 20, 2024 and sell it today you would earn a total of  0.00  from holding Playmaker Capital or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Playmaker Capital  vs.  International Game Technology

Playmaker Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Playmaker Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Playmaker Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

International Game

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Game Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Playmaker Capital and International Game

The main advantage of trading using opposite Playmaker Capital and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playmaker Capital position performs unexpectedly, International Game can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in International Game will offset losses from the drop in International Game's long position.

The idea behind Playmaker Capital and International Game Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.